Apprenticeship Levy Policy Cutting Apprenticeship Starts Say Critics

The number of apprenticeship starts this academic year is down by a quarter on the previous year, following the introduction of the government's Apprenticeship Levy policy. In the seven months to February 2018, the number of apprenticeship starts was 232,700, compared with 309,000 for the corresponding period the year before. Introduced in May last year, the Levy sees all companies with a payroll of over £3m pay 0.5% of their staff cost into the Levy, which is topped up 10% by Government.

According to Head of Policy Research at the IoD Seamus Nevin, "While the motivation behind the policy is lauable, the execution is flawed." Aside from the complexity of the system, many businesses have also been put off by the lack of flexibility in how the money can be used. A recent survey of IoD members found that only one in seven who paid the Levy thought it was fit for purpose. Head of External Affairs at the IoD Jamie Kerr argues that the system is in need of reform in this morning's City AM, writing that "It's time for action, beginning with consultation with businesses to ensure that the reformed system works for employers and apprentices alike."